Waxman-Markey Cap and Trade Will Pay For Itself, CBO Finds
The Waxman-Markey Climate Bill uses Cap and Trade to get our current 6 billion tons of CO2 a year down to just over 5 billion tons a year by 2020 (20% by 2020) and continuing down further by 2050.
The Congressional Budget Office has estimated that the auction proceeds of the current Cap and Trade bill would increase Federal revenues by about $846 billion by 2019.
That would more than fund the $821 billion in renewable energy spending that it will take (per the CBO) to reduce the national carbon footprint by almost a billion tons a year on deadline, and would leave $25 billion in the bank for additional renewable energy projects.
This revenue would fund programs that reduce carbon emissions and that cut the cost to individuals and businesses. Some examples over the jump:
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- Provide energy tax credits or energy rebates to small business and low and middle income families to offset the impact of higher energy-related prices.
- Require utilities to buy an increasing percentage of energy from renewable power and provide assistance like loan guarantees for clean energy projects.
- Fund research and development of technologies related to carbon capture and sequestration.
- Fund $25 billion in DOE loans to automobile manufacturers and component suppliers under the current Advanced Technology Vehicle Manufacturing Loan Program.
- Establish a Clean Energy Deployment Administration (CEDA) within the Department of Energy (DOE), which would be authorized to provide direct loans, loan guarantees, and letters of credit for clean energy projects.
- Authorize the Department of Transportation to provide individuals with vouchers to acquire new vehicles that achieve greater fuel efficiency than the existing qualifying vehicles owned by the individuals.
- Authorize appropriations for various programs under EPA, DOE, and other agencies.
According to the Congressional Budget Office, Waxman-Markey would cover about 72% of US emissions initially and by 2020 that would be up to 86 percent. The initial auction reserve price for carbon would be $10 a ton; stepping up to $15 by 2020 (and on up to $64 a ton by 2050.)
Cap and trade offers maximum flexibility, clear and feasible goals, and a predictable time-line:
The CBO made its constant, foolish mistake that they always make. They neglect to ascertain the impact of the extra taxes on the economy as a whole. This is why they overestimate the costs of tax breaks and overestimate the income of tax hikes.
Nearly a trillion dollars will be removed from efficient, productive businesses in the economy to fund unproductive businesses such as sequestration and inefficient businesses such as wind farms. Saying that it won’t negatively affect the economy is like saying hogwash doesn’t stink.
In medicine, if a doctor downplayed the side-effects of a surgery, calling a near-paralyzed limb a “reduction in dexterity” or even worse, a “reduced pain sensitivity in arm”, they would have thier license revoked for a gross violation of informed consent. We should ask the same honesty of our rulers. This may be necessary, but do not DARE lie about the downsides to cap-and-trade. People need to go into it with their eyes wide open and their rose colored glasses off.
“They neglect to ascertain the impact of the extra taxes on the economy as a whole”
No, Cap and Trade is not “taxes”. While there is a Cap on pollution, there’s provisions in the bill to prevent the fossil companies from passing on the costs (to them) of not switching to new renewable energy, but sticking with fossil fuels.
“Saying that it won’t negatively affect the economy is like saying hogwash doesn’t stink.”
It will cut into fossil company profits, but not consumer pockets (because of those consumer protections).
Susan - Please tell us you don’t mean or believe what you wrote!
Cap & Trade or taxes it is all the same - money out of the system. The provisions to prevent the utilities from passing on the costs are silly and will go away.
The utilities should operate at a loss to allow greens to feel good and happy? Don’t think so.
Love your comments, Russ, but Cap and Trade does not take money out of the system.
It is just moving money from fossil energy to renewable energy. The money itself stays in the economy; growing a carbon-free economy.
Fossil companies can invest in renewable energy, too, you know.
This cap and trade bill will cap the emissions, capping emissions means less operation of plants, less operation of plants means less jobs…Not exactly what we need in the middle of a recession. I say no, what do you say? Make your voice heard http://tinyurl.com/klfut8
Cap and trade would be the largest disaster our farmers have ever faced.
I am not at all arguing for the fossil fuel companies - they will be around far longer than I!
Reduced carbon is necessary but to many people think it is a simple and painless transition - it will not be.
I am simply saying that when market controls force the purchase and additional expenditure on Cap N Trade, money that would normally be spent on household items or food is no longer there.
Also, utility costs such as Cap N Trade are pass throughs - they definitely go to the consumer.
Russ, Stacy, kan, see for solutions to these issues you raise
http://cleantechnica.com/2009/09/11/76-of-cap-and-trade-bill-allowances-benefit-people-not-polluters/
I think for the Maxman-Markey bill to be enacted into law and to really become a healthy transition for the U.S. and world economy, the idea of sustainable living will not be anything like it is now. It will become one of the fundamental responsibilities of being human. Right now, the unknowns about exactly what will happen with this Bill is creating a lot of doubt and fear, which is expected. Through millions of frightened people it becomes amplified. We have to face the consequences of this transition with a boldness unlike anything ever seen. The infrastructure to implement renewable energy into the economy is massive and will take a good amount of time. I don’t think it’s going to be painless either, and will probably end up hurting in the short run. However we’re facing a dire future that will hurt like nothing ever felt before if we keep delaying action.
I don’t feel the devil’s in the details at all in this Bill, not one bit. We have the knowledge and ability to make the transition to a sustainable economy. It’s in the attitudes we have. Our attitudes have to change first, or at least be willing to be flexible.
Unfortunately we wait for disasters to happen before we come together as a people - cooperating, sharing, doing whatever it takes and helping out, but that too, we have a choice.
Comrades!
You will receive the Order of Lenin for your efforts in advancing the Communist Cause!
Socialize! Socialize! Socialize!
Altogether Now!
http://www.youtube.com/watch?v=suVB3YGIUk0